Australia: Shares close higher on Trump's remarks on trade talks

[SYDNEY] Australian shares ended higher on Thursday, recovering from a one-month low hit in the previous session, after comments from US President Donald Trump revived optimism about trade talks between Washington and Beijing.

The S&P/ASX 200 index firmed 1.2 per cent to 6,683.00 at the close of trade. The benchmark fell 1.6 per cent to its lowest in a month on Wednesday.

Mr Trump on Wednesday said that discussions with Beijing were going "very well," which eased concerns of investors who were jittery after his remarks on Tuesday that a trade deal might have to wait until after the 2020 US presidential election.

Mr Trump's remarks on Tuesday, which raised the prospect of a longer trade dispute between Washington and Beijing, had hurt stock markets around the world.

"The on/off noise we continue to hear on this subject is unlikely to disappear anytime soon and is set to continue dictating broader market sentiment," analysts at ING said in a note.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index also advanced 0.4 per cent or 47.92 points to finish at 11,257.79.

REUTERS